Bank of Japan cautions on low loan-loss reserves

Japanese banks’ loan-loss provisions continue to ebb below the low levels held before the financial crisis, the Bank of Japan (BoJ) reports, fanning concerns that the sector could be vulnerable to a sudden credit shock.

The median ratio of loan-loss provisions to total loans among Japanese regional banks stood at 0.037% in 2017, far lower than the 0.091% reported in 2004, and over six times lower than the 2008 peak of 0.23%.

Even among banks with some of the highest loan provisions to total

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here